University of Iowa

The economic context for strategic planning

[from Provost Loh's February 4, 2010 letter to faculty and staff]

  • In less than two years, because of falling tax revenues, the state has reduced The University of Iowa's appropriations by $65M. This represents a decline of nearly 25%, taking us back to the support level of the 1990s. Tuition revenues now exceed our appropriations.
  • President Mason has managed these reversions successfully, minimizing layoffs and avoiding furloughs by judicious use of one-time, federal stimulus (ARRA) funds to safeguard three priorities: Protect people. Protect education. Protect quality.
  • ARRA funds this year backfilled about $35M of the reversions, allowing us to postpone much of the pain. There will be no ARRA lifeline for FY 2011.
  • The Governor recently proposed an appropriation increase for Regent institutions that will amount to about $14M for The University of Iowa. If approved by the legislature, this increase would make the approaching fiscal "cliff" a little less steep. Our reductions would total $51M rather than $65M. But the cliff would still be steep.
  • In this environment, the Board of Regents, State of Iowa, has instructed Regent institutions to “operate in the most cost-effective manner possible.” According to planning guidelines of the Board staff, this means “do fewer things” rather than “do more with less.” It also means that “continuing programs will still be top quality.”

Recent highlights from the UI Budget Information Page:

For more information, see: